A stock has an expected rate of return of 13.1% and a beta of 1.23. The market expected rate of return is 10%, and the risk-free rate is 2%. What is the alpha of the stock?

Your personal opinion is that a security has an expected rate of return of 0.14. It has a beta of 1.45. The risk-free rate is 0.04 and the market expected rate of return is 0.12. According to the Capital Asset Pricing Model, this security is

	A.	cannot be determined
	B.	overpriced
	C.	underpriced
	D.	fairly priced